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City leaders will next week be asked to agree a devolution deal which could unlock billions of pounds for the region.

Across the North East, seven councils are preparing to agree the deal signed by authority leaders and Chancellor George Osborne last year.

Newcastle City Council meets on Wednesday to go over the proposals, before a series of special cabinet meetings are arranged to allow the legal sign off needed to approve the process.

If given the go ahead, the region will get an extra £30m a year to spend - in addition to being given control of a £3.4bn pool of investment cash.

The region will also get new powers covering employment and skills, transport and planning and business activity - all intended to drive economic growth.

Leaders emphasised that negotiations with the Government have taken place against a backdrop of austerity and, while devolution cannot reverse the cuts, it can create more freedom for the region to set its own priorities.

Preparations come as Newcastle leader Nick Forbes joined council chiefs for a Northern Powerhouse conference in Manchester on Wednesday and Thursday.

Coun Forbes said: “Devolution to the North East would bring together funds worth more than £3.4bn in the hands of elected council leaders, rather than letting George Osborne control our future from Whitehall.

“I have no doubt the Chancellor would be overjoyed if the deal was rejected, allowing him to spend the next four-and-a-half years punishing the North East for turning down his offer.

“Next week, councillors will meet to agree to formalise the deal reach with Government, a process which I’m hoping will have cross party support.”

Chancellor George Osborne at Nissan in Sunderland where he visited the Nissan Juke production line.

Last month Lord O’Neill, the chancellor’s Northern Powerhouse minister, met with authority leaders in the North East and made clear the devolution process will continue, with the likelihood of further powers for those who sign up to a deal.

Depending on how the city council votes, the proposal will go before cabinet on March 23 for final consideration before a formal proposal to establish a Mayoral Combined Authority is submitted under The Cities and Local Government Devolution Act 2016.

When the North East devolution deal was signed last October, the Chancellor said the move will give the region choice over major projects, with issues including the A1 and the Tyne Valley Railway line potentially placed in the hands of the elected mayor.

Mr Osborne said: “Some people said the North East would be left out of the Northern Powerhouse but the fact that Tees Valley, and here in Newcastle and the surrounding authorities, have come together to have these elected mayors shows that the North East is right at the heart of the Northern Powerhouse.